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INDIA- An Overview of Telecom Industry

INDIA- An Overview of Telecom Industry. By Terry Sandhu Vice President Business Development HCC Canada (www.hcccanada.ca) (Your local Partner for India Market) JULY 2003 . HCC Background... .

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INDIA- An Overview of Telecom Industry

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  1. INDIA- An Overview of Telecom Industry By Terry Sandhu Vice President Business Development HCC Canada (www.hcccanada.ca) (Your local Partner for India Market) JULY 2003

  2. HCC Background... • HCC Canada is co-founded in Canada in 1994 as Hi-Tech Communications Consortium (HCC) by Terry Sandhu. • HCC Canada (India) Ltd., registered in 2002 in India, 100% owned subsidiary, located in New Delhi, India. • HCC Canada operates in India through its own subsidiary and a network of 15 ASSOCIATES located at Bangalore, Bombay, Calcutta & Ahemdabad and other major cities.

  3. Founders Background • An Electronic Engineer by Profession. • Graduated from University of Delhi in 1972. • FELLOW of Institution of Electronic & Telecom Engineers (IETE) , India. • Served for 18 years at senior positions with Crown Corporations, Government of India. • Served with Alcatel, France as Consultant from 1992-1993 to induct SONET/SDH technology into India. • Migrated to Canada in 1994 and since then working as Consultant assisting North American companies to establish in India .

  4. INDIA- Political scene • 1950-1975: CONGRESS Regime • 1976-1979: BJP (Opposition) • 1980-1984: CONGRESS Regime • 1985-1989: CONGRESS Regime • 1990-1998: CONGRESS Regime • 1999- onward: BJP (Opposition)

  5. INDIA-Business Culture • World’s largest Democracy • Indian Constitution in English-British Pattern. • Main Business Language-English • World’s largest English speaking cheap technical manpower. • 300million rich median class with high purchasing power.

  6. INDIA- Closed Economy Opens-Contd… • 1950-1975: 49% Foreign Investment/Equity allowed in India • 1976-1979: Cap on Foreign Investment /equity forcing foreign companies to leave India ( Coca-Cola/IBM etc) • 1980-1984: Manufacturing of Telecom equipments opened to the Private Sector • 1985 -1990: Telecom recognized as important Infrastructure industry to fuel economy growth as power, Oil & Gas, Rail & Roads, Ports etc..

  7. INDIA- Closed Economy Opens • 1991-1994: De-regulation of Telecom sector to end Monopoly of PTT/Reduction of import duty from 80% to 35%(5% on handsets/0% on software) • 1995-2000: Licenses issued to Private operators in Basic telephony/ Cellular phones /Paging/VSAT/ TV Uplinking /CATV industry /ISPs/ TRAI set up/NTP1999 announced. • 2001- onward: Dis-investment continues in major public sector allowing foreign companies to invest in India(100% equity as ISP)

  8. INDIA- Telecom Licenses • Basic Telephone : 28 • Cellular Mobile: 35 • Radio Paging: 97 • Internet Service Providers: 144 • VSAT operators: 10 • GMPCS: 2 • DTH Service:2

  9. INDIA- Telecom Subscribers scene • Telephone Connections:40 million • TV house holds: 60 million • CATV subscribers: 40 million • Cell Phones subscribers:12 million • Internet Connections:2.5 million • VSAT Terminals:70,000

  10. INDIA- Telecom & Broadcast Trade Shows • Communications India: March • CATV/Broadcast India: November, Bombay • Engineering Trade Fair: November, Delhi

  11. INDIA- Foreign Companies in Communication India Trade show-March 2003 • CHINA – 30 • USA- 29 • UK- 17 • France -14 • ISRAEL – 6 • Korea/Germany- 5 each • Canada-2

  12. INDIA- Good News for Foreign Companies • Equity allowed up to 49% . • 100% Profits can be taken out of India. • Dropping customs duty (Max. 5 to 35%)-Slogan: import chips not potato chips • Telecom regulation in place(TRAI). • TAX holiday for 5 years for setting up industry in rural area.

  13. INDIA- “Some mixed views of CEOs in Telecom Sector” • “Indian Telecom sector is at a crossroads and faces an uncertain future.” • “Current licensees who badly miscalculated the Indian market and committed themselves to huge license fees, which they are unable to pay” • “Key policy issues are still unresolved and still limits technology options” • “Financing is a challenge” • “Despite uncertainty, telecom industries are growing, changing and converging – driven by the internet.” • “There are new technologies, new players and even some new policies”

  14. INDIA- Telecom • Thanks you • Terry Sandhu • 604-377 7698 • sales@hcccanada.ca • www.hcccanada.ca

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